Was thinking about buying a 32gig IPOD Touch used off Craigslist as I can't really afford a brand new one right now..... My concern is what if it is stolen? Will the authorities show up at my house after I register it?
No, especially since they would be able to tell you bought it offline. Also, it is highly unlikely it was stolen anyway.
I wouldn't worry too much about it. There are numerous "ipod products" that are either stolen or resell to another owner. It is difficult to track all the missing ipod product out there. If you can find one that is consider a good deal off cragslist, i would buy it and worry about the stolen issue afterward